China-based executives bullish on global outlook, says survey
Business executives in China are more optimistic about global economic growth than their global counterparts, according to the latest survey by PricewaterhouseCoopers.
Around 69 percent of Chinabased CEOs believed global economic growth will improve in 2018, outstripping 57 percent among business leaders overseeing a global operation, the consultancy said on Thursday.
The results marked a substantial jump from last year’s 31 percent, according to the study, which polled 195 executives who are either at the helm in multinational corporations’ China branches, China’s State-owned companies or local private firms.
And the group has exhibited a higher level of confidence in companies’ short-term development, with 38 percent forecasting revenue growth in 12 months.
Such momentum is likely to be fueled by major government agendas in China, including the Belt and Road Initiative, the Beijing-Tianjin-Hebei City Cluster and the Greater Bay Area, said Siu Fung Chan, a partner at PwC who leads the firm’s Deals Strategy practice in the Chinese mainland and Hong Kong.
“Almost 89 percent of the executives we surveyed here are anchoring their investment to these initiatives,” said Chan. “A striking 91 percent of them identified ‘Made in China 2025’ as a driver of opportunities for their companies.”
From the perspective of CEOs in China, the United States and Hong Kong continue to be the top two growth markets, while Germany has been replaced by Japan as the third most attractive destination.
Another noticeable trend is that China-based executives have attached greater importance to digitalization and its impacts. A higher proportion, or 84 percent of businesses in China, compared with the global average of 67 percent, are working towards talent retention and skill development in the light of automation.
“Measures include improving compensation and benefit packages, implementing continuous learning programs, introducing flexible working hours, and even changing dress codes,” Chan said.